The Millennium Challenge Corporation (MCC) has described as ‘unwarranted’ government’s decision to terminate the concession agreement between the Electricity Company of Ghana (ECG) and Power Distribution Service (PDS).
According to the US Government, the agreement which was signed on March 1, 2019 is ‘valid’ and hence it’s surprised the Government of Ghana will threaten to cancel the agreement.
“The United States of America notes this decision with regret. Based upon the conclusions of the independent forensic investigation, the U.S. position is that the transfer of operations, maintenance, and management of the Southern Distribution Network to the private concessionaire on March 1, 2019, was valid, and therefore the termination is unwarranted,” the US government stated in a release.
The MCC further noted that Ghana will likely lose the $190m which was the amount the country was to realize from the second tranche of the power compact support.
“As such, MCC has confirmed that the $190 million funds granted to Ghana at the March 1 transfer to the 20-year concession from ECG to PDS are no longer available.
“The United States underscores the importance of contract sanctity as essential to a conducive investment climate and a pre-condition for inclusive economic growth.
Below is the full statement from the US Government on the PDS brouhaha:
Source: Ghana | Angelfmonlinegh.com | KWAKU NTI